Huarong Leads China's Big Four AMCs in Terms of Assets Held
Song Yikang
/SOURCE : Yicai
Huarong Leads China's Big Four AMCs in Terms of Assets Held

(Yicai Global) March 29 -- China Huarong Asset Management Co. led the country's four major state-owned firms in the sector in terms of assets under management (AUM) last year, with CNY1.87 trillion (USD297.4 billion), though China Orient Asset Management Co. posted the fastest growth.

Fellow big four firm China Cinda Asset Management Co. achieved a net revenue of CNY18.1 billion, up 16.8 percent annually, with total AUM reaching CNY1.4 trillion, though China Huarong topped Cinda a net profit of CNY26.6 billion, up 15.1 percent from the prior year.

Of the other two AMCs, both unlisted, Orient achieved net earnings of CNY12.4 billion for the year, up 38 percent annually, along with AUM of CNY979.2 billion. China Great Wall Asset Management Co. delivered a net profit of CNY10.6 billion, a rise of 18.5 percent from the year before, and AUM totaling CNY911.9 billion.

At the end of last year, China's banking watchdog tightened regulations regarding capital adequacy ratio, financial leverage ratio and AMC risk controls. The capital adequacy ratio (the ratio of proprietary capital to risk assets) should be no less than 12.5 percent.  

As of the end of last year, Cinda had the highest capital adequacy ratio at 16.8 percent, while Orient (14.3 percent), Huarong (13.06 percent), and Great Wall (12.55 percent), all exceeding regulatory requirements. The company has further improved on its capital adequacy ratio by listing in China this year, indicated Lai Xiaomin, Huarong Chairman at the annual results presentation held on March 22. 

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Keywords: China Huarong , AMC , China Cinda , China Orient , China Great Wall